APPENDIX 17

APPENDIX 17

CONTRACT STANDING ORDERS

CONTENTS
1. Interpretation

2. Application
3. Exceptions
4. Framework
Arrangements
5. Consultant
6.
Supervision of Contracts by Third Parties

7.
Conflict of Interest of Officers

8. Pre-Estimate

9. Selection,
Evaluation and Award Criteria
10.
Nominated Sub-Contractors and Suppliers
11.
Contracts under £30,000 - Chief Officers' Rules
12.
Contracts over £30,000

13. Open
Tendering
14. Standing
List

15.
One-Off List
16.
Invitations to Tender

17.
Contracts with an estimated value exceeding the relevant EU threshold
18. Invalid
Tenders
19.
Receipt of Tenders
20.
Opening of Tenders
Issue: 3
22/02/06
Reference: Appendix 17
1 of 28

21.
Errors or Discrepancies in Tenders
22.
Acceptance of Tenders
23.
Post Tender Negotiations
24.
Form of Contract
25.
Transfer of Undertakings (Protection of Employment) Regulations 1981 (TUPE)
26. E-Procurement
27. Constructing
Excellence
28. Procurement
Guide
Issue: 3
22/02/06
Reference: Appendix 17
2 of 28

STANDING ORDERS RELATING TO CONTRACTS

The overall purpose of these Contract Standing Orders is threefold:-

(a)
to ensure transparency and fairness in the procurement of works, goods and
services
(b)
to ensure the County Council gets best value from its procurements
(c)
to protect those involved in the procurement process.

1. Interpretation
In these Standing Orders, unless the context otherwise requires:-
1.1   “appropriate Chief Officer” means either the Chief Officer responsible for the
function to which the contract relates (or any other person or body duly authorised)
except that, where under any major user purchasing policy another Chief Officer is
responsible for the letting of the contract, it shall mean that Chief Officer in
consultation with the Chief Officer on whose behalf the contract is to be let.

1.2
"estimated value” means the value of the contract estimated under Standing Order
8.

1.3 a "concession" is where the County Council allows an outside body, under contract,
to run a service on its behalf using income derived from the service.

1.4
“person” includes a partnership, body corporate or unincorporated association.

1.5  "In writing" or "written" includes transmission by email and any other electronic
means which is approved by the Head of Law and the Director of Finance.

1.6  The Procurement Guide means the manual issued by the Director of Finance
containing best practice guidance on procurement and known by that name.

2. Application


These Contract Standing Orders apply to every procurement contract made by or
on behalf of the Norfolk County Council except contracts:

•  for the acquisition of any interest in land.
Issue: 3
22/02/06
Reference: Appendix 17
3 of 28

•  for the lending or borrowing of money.
•  of employment for an individual employee.
•  for the disposal of property (including any interest in land).
•  secured by ESPO.
•  for the engagement of Counsel.
•  the procurement of which the County Council is securing on behalf of a third
party, unless it is agreed between the Council and the third party that they will
apply.

NOTES:

(a)
Generally our partners and contractors must comply with these Standing
Orders when letting contracts on our behalf if it is the County Council who
bear the risk. See also the “External Partnerships Protocol – Guidance for
Officers” issued by the Head of Law in November 2003.

(b)
NCC units spending Government money must either follow these CSOs or
equivalent, established provisions.

Procedures relating to disposals (excluding those relating to land) are dealt with
separately within the Procurement Guide.

3. Exceptions
3.1  Subject to the requirements of EU Directives, Acts of Parliament and UK
Regulations (see Standing Order 17 and the Procurement Guide for contracts over
the EU threshold) tendering is not required:-

(a)
for supplies or materials which are available only as proprietary or patented
articles from one contractor or supplier and for which the appropriate Chief
Officer certifies that there is no reasonably satisfactory alternative is
available in the European Union and for repairs to, or the supply of, parts of
existing proprietary or patented articles, including machinery or plant; (such
certificate must be retained on the appropriate file and where the contract
exceeds £100,000, reported to the next meeting of the Cabinet).

(b)
for works of art, museum specimens or historical documents;

Issue: 3
22/02/06
Reference: Appendix 17
4 of 28

(c)
for a procurement which constitutes a variation or extension of an existing
contract and either:-

(i)
the variation or extension is specifically provided for in the original
contract (although in such cases the appropriate Chief Officer should
first consider whether re-tendering would be likely to result in better
value for the County Council), or

(ii)
the estimated value of the variation or extension is less than the
greater of £5,000 or 10% of the original contract sum.

(d)
for supplies or materials to be purchased at an auction;

(e)
for procurements by the Director of Children’s Services and the Director of
Adult Social Services:-

(i)
a voluntary or charitable organisation or
(ii)
from a body whose services have been secured by an agreement that
reflects a declared price agreed by the Cabinet.
(iii)
for a bespoke care package for a specified individual

In the case of this exception the Director of Children’s Services or the
Director of Adult Social Services (as the case may be) must retain on file a
record of the negotiations surrounding the contract awards.

(The third exception applies only where agreed by the Director or a person
authorised by the Director in accordance with a protocol approved by the
Cabinet).

(f)
for procurements by a Trading Unit which procurements are required only to
enable that Trading Unit to itself carry out work and/or provide supplies
and/or services in a contract which is to be (or has been) won or lost by the
Trading Unit itself through a competitive tendering or quotation process.
Trading Units are normally expected to secure their procurements through
the processes set out in these standing orders.

Issue: 3
22/02/06
Reference: Appendix 17
5 of 28

(g)
for the execution of work or for the supply of services or supplies or material
certified by the appropriate Chief Officer as being required so urgently as to
preclude the invitation of quotations or tenders. (Where the contract exceeds
£100,000 in estimated value, such certificate must be reported to the next
meeting of the Cabinet; otherwise the certificate is to be retained on the
appropriate file);

(h)
for something which the appropriate Chief Officer and the Head of Law
agree that it is not reasonably practicable or in the Council's interests so to
do, subject (if the contract exceeds £100,000 in estimated value) to a report
to the Cabinet.

(i) For agreements which are expressly exempt from the tendering
requirements of Section 89 of the Transport Act 1985.

NOTE

•
These exceptions do no relate to Part A services above the EU threshold (for
threshold values see Chapter 3 of the Procurement Guide).

3.2
Other exceptions to these Standing Orders may only be made within the relevant
law and with the authority:-

•
of the Council by a direction given generally or in relation to contracts of a
specified class, or,

•
of the Cabinet especially in relation to a specific contract either in an
emergency or other special reason justifying it.

3.3
Every exception authorised by the Cabinet must be reported to the Council and the
report must specify the emergency or other special reason justifying it.

3.4
Where Chief Officers have authorised departures from Contract Standing Orders,
under Paragraphs 3.1 (a), (g) or (h) these must be reported by the appropriate
Chief Officer to the Director of Finance, who must maintain a register of all such
departures and report them to the Procurement Standards Board.

Issue: 3
22/02/06
Reference: Appendix 17
6 of 28

4.
Framework Arrangements:

4.1  In this Standing Order, a Framework Arrangement is a formal tendered
arrangement which sets outs terms and conditions under which specific purchases
can be made throughout the term of the agreement and the appropriate Chief
Officer procures the supplies, services or the works from the successful tenderer(s)
in unpredicted quantities at various times during the period that the agreement is in
force. For this purpose, a Framework Arrangement may be set up by the County
Council or ESPO or some other Consortium, association or similar body of which
the County Council is a member or party.

4.2
In any case where a Framework Arrangement in accordance with these standing
orders is in place:-
(a)
Orders to be placed against a known price do not require further competition
unless required by law.
(b)
In circumstances where the price was not specified under the Framework
Arrangement an order can only be placed if three quotes have been
obtained from the list of suppliers specified in the Arrangement or, if there
are less than three suppliers specified, then all of them. (See note (c) in the
respect of framework arrangements over the EU threshold).

4.3
When advertising for a Framework Arrangement the advertisement must indicate:-

(a)
That it is a Framework Arrangement which is being tendered.
(b)
The duration of the Arrangement.
(c)
The expected maximum number of suppliers.
(d)
The estimated total value of the contracts to be covered by the Arrangement.
(e)
The award criteria for choosing suppliers and subsequent criteria for placing
orders.

4.4  Chief Officers must ensure that supplies, services and works are ordered via
ESPO, consortia or centrally negotiated contracts whenever such Arrangements
have been put in place by the Council, unless better value for money can be
obtained by using an alternative source of supply. The latter cases must be referred
to the Director of Finance who must in turn notify ESPO if appropriate.

Issue: 3
22/02/06
Reference: Appendix 17
7 of 28

NOTES:

(a)
Under CSO 4.2 the OGC can be used when appropriate and agreed with the CPU.
(b)
A protocol for the use of the OGC framework and similar frameworks in respect of
ICT contracts will be published in the ICT Procedures Appendix D3 of the
Procurement Guide.
(c)
Where the price is not specified under a framework arrangement which exceeds
the EU threshold then an order can only be placed if quotes are sought from all the
suppliers in the arrangement capable of meeting the particular requirements.

5.
Consultants
5.1  The engagement of consultants and other professional advisers must be in
accordance with these Standing Orders insofar as reasonably practicable unless
the Council or Cabinet decide otherwise.

5.2
The appropriate Chief Officer must ensure so far as possible that no conflict of
interest exists for any chosen consultant, etc., either as between the Council and
other clients or as between different pieces of work by that consultancy, etc., for the
Council.

6.
Supervision of Contracts by Third Parties

6.1
It must be a condition of any contract between the Council and any person (not
being an Officer of the Council) who is required to supervise a contract on behalf of
the Council that in relation to that contract he must comply with the requirements of
these Standing Orders as if he were the appropriate Chief Officer.

6.2
Such person must:

6.2.1  at any time during the carrying out of the contract produce to the appropriate Chief
Officer or his/her representative on request all records maintained by him/her in
relation to the contract; and

6.2.2  on completion of the contract transmit all records to the appropriate Chief Officer.

7.
Conflict of Interests of Officers
Officers employed by the Council must comply with Paragraph 8 of the Council's
"Standards of Conduct and Behaviour - Guidelines for Employees", relating to
conflicts of interest.
Issue: 3
22/02/06
Reference: Appendix 17
8 of 28

8. Pre-estimate

8.1
Before any procurement is begun the appropriate Chief Officer must estimate the
value of the contract and must keep a written record of that estimate in the
Department.

8.2
In the case of contracts for:-

(a)
the hire of goods for an indeterminate period or
(b)
the provision of services for a period in excess of 4 years or for an
indeterminate period.

the estimated value of the contract for the purpose of these standing orders must
be the estimated monthly cost multiplied by 48 or; where monthly costs are
inapplicable the estimated annual cost multiplied by 4.

8.3
In the case of contracts for the supply of goods (except for a hire in accordance
with paragraph 8.2 (a)) over a period where the Council enters into a series of
contracts or a renewable contract the estimated value of the contract is either:-

(a)
the aggregate value of similar contracts over the previous 12 months

(adjusted for any known changes in demand);
(a)
the estimated value of similar contracts over the next 12 months or
(b)
if the contract is for a definite term of more than 12 months, the estimated
value for the period of the contract.

8.4
For all supplies, services and works not covered by Paragraphs 8.2 or 8.3, the
estimated value for the purpose of these Standing Orders must be the total
estimated value of the supplies, services or works to be supplied over the period
covered by the contract.

8.5
The value of a concession for the purpose of this Standing Order is the estimated
gross value of the service before income.

Issue: 3
22/02/06
Reference: Appendix 17
9 of 28

Note:- In considering the estimated value of a contract it is important to note:-

a) periodic purchases from the same suppliers for the same requirement, should be
aggregated for the purpose of 8.4. There is a potential to secure better value for
money where such requirements are aggregated and where the aggregate sum
exceeds £30,000, the requirement must be tendered.

b)  orders to suppliers for a particular requirement, even if placed by different parts of the
County Council and to different suppliers, may constitute a single procurement for the
purposes of EU Directives with the result that the values of each contract must be
aggregated across the Council. Further advice on aggregation under the EU Directives
is contained in the Procurement Guide.

c) where the contract relates to a matter where there is external funding, the estimated
value will be the gross estimated value of the contract, not the value of the County
Council's contribution.

9.
Selection, Evaluation and Award Criteria

9.1
Every contract or official order for works, supplies or services made by the County
Council must be for the purpose of achieving the Council’s statutory and approved
objectives and must be made in accordance with the Council’s duty of Best Value,
i.e. the duty to ensure continuous improvement and to provide efficient, high quality
services that people want at a price they are willing to pay.

9.2
Criteria for Selection of Tenderers

This paragraph 9.2 applies where a One-Off List is used under Standing Order 15.

9.2.1  Contracts between £30,000 and the relevant EU threshold

In respect of these contracts the appropriate Chief Officer must determine
and publish in the Invitation the Tender the minimum criteria to be applied in
determining whether a person will be invited to tender.

9.2.2  Contracts above the relevant EU threshold

In respect of contracts to be awarded for Part A Services above the relevant
EU threshold:-

(a)
where there is a sufficient number of persons suitable to be selected
for invitation to tender the number may be limited provided that the
contract notice specifies:-

(i)
the criteria to be applied in order to limit the number of
tenderers, and
Issue: 3
22/02/06
Reference: Appendix 17
10 of 28

(ii)
the minimum number of tenderers, which must not be less than
5, which it is intended to invite to tender and, where
appropriate, the maximum number.

(b)
the number of those invited to tender must be sufficient to ensure
genuine competition and at least equal to the minimum number
specified in the contract notice.

(c)
where an application of the selection criteria results in an exclusion of
some of those who have expressed an invitation to tender (see the
footnote below) and as a result the number of those invited is less
than the minimum number specified in the contract notice, the award
procedure can continue with those who have been selected provided
that no-one is then included who was not selected or who did not
request to participate.

(d)
minimum levels of economic and financial standing and technical or
professional ability can be used to select those invited to tender
provided those minimum levels are specified in the contract notice
and are related to and proportionate to the subject matter of the
contract.

NOTE:

Chapter 20 of the Procurement Guide sets out the circumstances in which potential
tenderers either must or can be excluded from being invited to tender.

9.3
Criteria for the evaluation and award of Contracts

9.3.1 Contracts between £30,000 and the relevant EU threshold

(a)
Before any tender is sought the appropriate Chief Officer must decide and
record the award criterion to be used when the tenders are received.

(b)
The award criterion must be either:-

•
the lowest price (where the Council is to pay the supplier); or
•
the highest price (where the supplier is to pay the Council); or
•
the most economically advantageous tender.

(c)
If the chosen award criterion is the “most economically advantageous”, the
appropriate Chief Officer must then decide and record in a list the evaluation
criteria (in descending order of significance) upon which the tenders will be
so evaluated.

(d)
The appropriate Chief Officer must notify all those invited to tender which
award criterion is being used in the case of the contract in question and
where applicable, the evaluation criteria.

Issue: 3
22/02/06
Reference: Appendix 17
11 of 28

9.3.2  Contracts above the relevant EU threshold

(a)
The contract must be awarded on the basis of the offer which is either the
most economically advantageous from the point of the view of the Council or
offers the lowest price.

(b)  In order to determine the offer which is the most economically
advantageous, criteria must be used which are linked to the subject matter
of the contract.

(c)
Where it is intended to award a contract on the basis of the most
economically advantageous offer, the weighting which is to be given to each
of the chosen criteria must be stated in the contract notice or in the contract
documents. When stating these weightings they must be given a range
(specifying a minimum and maximum weighting) where this is considered
appropriate in view of the subject matter of the contract.

(d)
Where it is not possible to provide weightings for the chosen criteria, on
objective grounds, the contract notice or contract documents must indicate
the criteria in descending order of importance.

NOTE:

If an offer is abnormally low this may be rejected in the circumstances set out in Chapter
23.2.1 of the Procurement Guide.

9.4
Innovative Forms of Procurement

For contracts involving innovative forms of procurement and below the relevant EU
threshold where the scheme is not defined at the tender stage, the award criterion will be
the most economically advantageous tender. In the case of such contracts, the
appropriate Chief Officer must decide and record the basis on which tenders will be
evaluated and must also inform tenderers of the process for awarding and developing the
contract.

10.
Nominated Sub-Contractors and Suppliers

Where a sub-contractor or supplier is to be nominated to a main contractor, the
following provisions shall have effect:

10.1  Where the estimated amount of the sub-contract or estimated value of the work or
supplies to be supplied by the nominated supplier does not exceed £30,000 then,
unless the appropriate Chief Officer is of the opinion in respect of any particular
nomination that it is not reasonably practicable to obtain competitive prices,
quotations shall be invited for the nomination in accordance with Standing Order

Issue: 3
22/02/06
Reference: Appendix 17
12 of 28

10.2  Where the estimated amount of the sub-contract or estimated value of the work or
supplies to be supplied by the nominated supplier exceeds £30,000  then, unless
the Council or the Cabinet determine in respect of any particular nomination that it
is not reasonably practicable to obtain competitive prices, tenders must be invited
in accordance with Standing Order 12.

10.3  The terms of the invitation under paragraph 10.1 or 10.2 above must require an
undertaking by the tenderer that, if selected, they will be willing to enter into a
contract with the main contractor on terms which indemnify the main contractor
against their own obligations under the main contract in relation to the work or
supplies included in the sub-contract.

10.4  The appropriate Chief Officer must comply with Standing Order 9 in deciding the
person whose tender is to be nominated to the main contractor.

NOTE:

Care must be taken when nominating sub-contractors and suppliers in technical
specifications. In particular it must be justified by the subject matter of the contract or
accompanied by the words “or equivalent”. In other words, the County Council must be
genuinely open to the consideration of alternatives.

11.
Contracts under £30,000 - Chief Officer’s Rules

Contracts, the estimated value of which is below £30,000, must be let in
accordance with rules to be made by the appropriate Chief Officer for use within
his/her Department. These rules must require competitive quotations to be
obtained unless impracticable. The appropriate Chief Officer must obtain the
approval of the Director of Finance and the Head of Law to the text of his/her Rules
and to any amendment thereof. Model Rules setting out minimum requirements are
included in the Procurement Guide. Final versions of Departmental rules must be
copied to the Director of Finance and the Head of Law. In the absence of any
Departmental rules the Model Rules will apply. (See Chapter 6 of the Procurement
Guide).

12.
Contracts over £30,000

For contracts with an estimated value of more than £30,000, the appropriate Chief
Officer must invite tenders on the basis of open tendering. unless the Council or the
Cabinet have authorised, whether specifically or generally, the use of a Standing
List or One-Off List.

Issue: 3
22/02/06
Reference: Appendix 17
13 of 28

13. Open
Tendering

13.1  For contracts with an estimated value of more than £30,000 but less than the
relevant EU threshold, the appropriate Chief Officer must at least fifteen days
before the last date for the receipt of tenders give public notice in a local
newspaper expressing the nature and purpose of the contract or stating where
further details may be obtained and inviting tenders for its execution, and may also
give such notice in an appropriate trade or professional journal.

13.2  If the estimated value of the contract exceeds the relevant EU threshold, the
appropriate Chief officer must give public notice in:-

•
at least one local newspaper and
•
at least one appropriate trade or professional journal and
•
the Official Journal of the European Communities (OJEC).

13.3  Under open tendering, invitations to tender must be sent to all those who respond
to the public notice.

13.4  Tenders submitted on the basis of open tendering must be evaluated in two
stages:-

(a)
As a first stage, tenderers will be evaluated for financial and economic
standing and, in cases where the appropriate Chief Officer in consultation
with the Head of Law considers it appropriate, technical capacity in
accordance with requirements to be specified in the Invitation to Tender.
Tenderers who fail to meet these requirements will be disqualified at this
stage and will not be evaluated further.

(b)
Tenders which are not disqualified under paragraph (a) will be evaluated in
accordance with Standing Order 9.

13.5  In addition, the relevant EU Procurement Rules, including rules relating to
timescale for giving notice, must be followed in respect of contracts for Part A
services (as defined in the EU rules) supplies and works the estimated value of
which exceeds the relevant EU Threshold.

Issue: 3
22/02/06
Reference: Appendix 17
14 of 28

13.6  For Part B services (as defined in the EU rules) the requirements relating to non-
discriminatory technical specifications and obligatory contract award notices apply.

NOTE:

All contracting procedures must be fair, transparent and reasonable and consideration
must be given to whether a Part B Contract needs to be advertised in the OJEU to meet
the EU Treaty principles of non-discrimination on grounds of nationality, equal treatment
and free movement of goods and services.

14.
Use of a Standing List

This Standing Order applies to contracts with an estimated value of more than
£30,000 but less than the relevant EU threshold, where the Council or the Cabinet
have authorised the use of a Standing List for a contract or for a category of
contracts.

14.1  The list must:

•  be compiled and maintained by the appropriate Chief Officer; and
•  contain the names of all persons who are approved by the Cabinet; and
•  indicate the categories of contract and the values or amounts in respect of those

categories for which those persons are approved.

14.2  At least four weeks before a list is first compiled, a notice inviting applications by a
specified date for inclusion in it must be published:

•  in at least one local newspaper; and
•  in at least one appropriate trade or professional journal.

14.3  The notice referred to in Paragraph 14.2 must include any minimum criteria to be
applied in determining whether a contractor will be selected for the list or any part
of the list. (See also Paragraph 9)

14.4  The list must be submitted to the Cabinet for approval together with details of any
person whose name is not included in the list but had requested that it should be.

14.5  The list must be amended as required from time to time and must be reviewed at
intervals not exceeding three years. At least four weeks before each review, each
person whose name appears in the list must be asked whether he wishes his/her
name to remain there and notices inviting applications for inclusion in the list must
be published in the manner provided by paragraph 14.2.
Issue: 3
22/02/06
Reference: Appendix 17
15 of 28

14.6  At each review the list must be reported to the Cabinet with particulars showing
those invited to tender, those responding and those successful, since the last
review, and individual amendments must also be reported to the Cabinet.

14.7  Invitations to tender for a contract where use of a Standing List has been
authorised must be sent to:

•
not less than four of the persons selected by the appropriate Chief Officer,
from among those approved for a contract of the relevant category and
amount or value; or
•
where fewer than four persons are approved for a contract of the relevant
category and amount or value, all those persons.

NOTE:

Chief Officers will be expected to operate a policy of fair rotation of suppliers invited to
tender whilst having regard to matters such as price and geographical location. See also
Chapter 10 of the Procurement Guide.

14.8  A Standing List must not be used for contracts with an estimated value exceeding
the relevant EU threshold.

15.
Using a One-off List

This Standing Order applies where authorisation has been given for the use of a
one-off list.

(a)
Contracts between £30,000 and the relevant EU Threshold

15.1  For contracts with an estimated value of more than £30,000 but less than the
relevant EU threshold, where use of a One-Off List has been authorised, a notice,
as required by Standing Order 15.2 must be published in at least one local
newspaper and may be published in an appropriate trade or professional journal.

15.2  The notice must:

•
specify details of the contract into which the Council wishes to enter; and
•
invite persons interested to apply for permission to tender; and
Issue: 3
22/02/06
Reference: Appendix 17
16 of 28

•
specify a period being not less than ten days, within which such applications
are to be submitted to the Council.

15.3  The appropriate Chief Officer may  in addition to those who reply under Standing
Order 15.1 also give notice to all or a selected number of persons included in any
relevant Standing List set up under Standing Order 14.

15.4  Those who apply for permission to tender must be given details of the criteria which

will be used to decide who to invite to tender. (See paragraph 9.2.1).

15.5  After the expiry of the period specified in the notice, invitations to tender for the
contract must be sent quoting a return date allowing not less than 15 days for
tenders to be returned, to:

•
not less than four of the persons who apply for permission to tender,
selected by the appropriate Chief Officer; or
•
where fewer than four persons have applied or are considered suitable, to all
those persons whom the appropriate Chief Officer considers suitable

15.6  In the case of contracts with an estimated value over £100,000 the names of all
persons who applied and of those invited to tender shall be reported to the Cabinet.

(b)
Contracts above the relevant EU Threshold

15.7  If the estimated value of the contract exceeds the relevant EU threshold, notice
must be published in:-

•  at least one local newspaper and
•  at least one appropriate trade or professional journal and
•  in the Official Journal of the European Communities.

15.8  In addition, the relevant EU Procurement Rules, including rules relating to
timescales for giving notice, must be followed in respect of contracts for Part A
services (as defined in the EU rules) supplies the works the estimated value of
which is above the relevant EU Threshold.

Issue: 3
22/02/06
Reference: Appendix 17
17 of 28

15.9  For Part B Services (as defined in the EU Rules) the requirements relating to non-
discriminatory technical specifications and obligatory contract award notices apply.

NOTES TO PARAGRAPH 15(b)

(a)  All contracting procedures must be fair, transparent and reasonable and
consideration must be given to whether a Part B Contract needs to be advertised in
the OJEU to meet the EU Treaty principles of non-discrimination on grounds of
nationality, equal treatment and free movement of goods and services.

(b)
See also CSO 9.22 and 9.32 for further details on the requirements in respect of
contracts above the relevant EU threshold.

(c)
The rules for the procurement of Part A Services above the EU limit now also
allows for “competitive” dialogue in limited circumstances. Further information on
this procedure and the circumstances in which it can be used can be found in
Appendix D4 of the Procurement Guide.

16.
Invitations to Tender

16.1  Every invitation to tender must specify the latest day and hour and the place
appointed for the receipt of tenders and must state the effect of Standing Order 18.
16.2  Persons to whom tender documents are sent must be asked to acknowledge
receipt.
16.3  Tenders estimated as below £100,000 must be addressed to, and opened by, the
appropriate Chief Officer. Tenders estimated over £100,000 must be addressed to
and opened by the Head of Democratic Services.
16.4  Where the estimated value of the contract is over £100,000 the appropriate Chief
Officer must on inviting tenders send to the Head of Democratic Services a note of
the subject and the closing date and time and (where appropriate) a list of the
persons invited to tender together with the estimated value.

17.
Contracts with an estimated value exceeding the relevant EU threshold

The appropriate Chief Officer must comply with all of the Procedures set out in the
relevant EU Directives and consequent UK Regulations (For guidance see Appendix B of
the County Council's Procurement Guide)

Issue: 3
22/02/06
Reference: Appendix 17
18 of 28

18. Invalid
Tenders

18.1  An invalid tender must not be accepted.

18.2  A tender is not valid unless it has been delivered to the place appointed by the
Head of Democratic Services (or, where the estimated value of the contract was
below £100,000, by the appropriate Chief Officer) not later than the appointed day
and hour in a plain sealed envelope or parcel addressed to the Head of Democratic
Services (or, where the estimated value of the contract was below £100,000, to the
appropriate Chief Officer). The envelope or package must bear the word “Tender”
followed by the subject to which it relates and shall not be valid if the envelope,
parcel or packaging bears any name or mark indicating the sender (regardless of
the identity of the person causing the name or mark in question to be visible) or has
been unsealed or opened or shows evidence of having been re-sealed prior to the
appointed time.

18.3  Qualified tenders will not be considered except to the extent provided in Standing
Order 23.2.

19.
Receipt of Tenders

On receipt, envelopes containing tenders must be date and time stamped by the
Head of Democratic Services or by the appropriate Chief Officer and shall remain in
his/her custody until they are opened.

20.
Opening of Tenders

20.1  Tenders must be opened at one time in the presence of not less than two Officers
of the Council designated by the Head of Democratic Services (or, where the
estimated value of the contract was below £100,000, by the appropriate Chief
Officer), who must both initial each tender.

20.2  Tenders received at the appointed place later than the day and time specified
under Standing Order 16 must not be opened.

20.3  Particulars of all tenders opened must be recorded on a form which must be signed
by the Officers present at the opening, together with a note of the number of
unopened tender envelopes.

Issue: 3
22/02/06
Reference: Appendix 17
19 of 28

20.4  Where the estimated value of the contract exceeded £100,000 the Head of
Democratic Services must forthwith send a copy of the completed form to the
appropriate Chief Officer (with the tender documents) and to the Director of
Finance and must retain a copy him/herself.

20.5  All tenders received, including any invalid tenders, must be retained in accordance
with the Retention of Documents statement within the Procurement Guide.

21.
Errors or Discrepancies in Tenders

21.1.1 Where examination of tenders reveals errors or discrepancies which would affect
the tender figures in an otherwise successful tender, the tenderer is to be given
details of such errors and discrepancies and afforded an opportunity of confirming
or withdrawing the offer.

21.1.2 Where a tender is for a fixed sum and is for measured work calculated on Bills of
Quantity with rates or Activity Schedules and the arithmetical calculations are
erroneous the tenderer may confirm either the rate (or rates) or the total for that
particular item or the tenderer may withdraw the offer. Where the Contractor has
agreed to confirm their offer, any revision to the arithmetic total will require a
compensating adjustment to provide a build up of cost to agree with the tendered
sum.
21.1.3 Where a tender is for measured work calculated on Bills of Quantity with rates or
Activity Schedules and is not for a fixed sum and the arithmetical calculations are
erroneous the tenderer may confirm either the rate (or rates) or the total for that
particular item or the tenderer may withdraw that offer.

21.2  If the tenderer withdraws, the next tender in competitive order is to be examined
and then dealt with in the same way.

21.3  Any exception to this procedure may be authorised only by the Cabinet after
consideration of a report by the appropriate Chief Officer, or in cases of urgency, by
that Chief Officer after consultation with the Leader.

22.
Acceptance of Tenders

22.1  The appropriate Chief Officer may accept from valid tenders in accordance with the
decided award criterion:

Issue: 3
22/02/06
Reference: Appendix 17
20 of 28

22.1.1 the lowest tender, if that was the award criterion, provided that the tender is not
more than 10 per cent above the estimated value; or

22.1.2 the highest tender, if that was the award criterion, provided that the tender is not
more than 10 per cent below the estimated value; or

22.1.3 the most economically advantageous tender, if that was the award criterion and if
one tender clearly meets that criterion more closely than any other: or

22.1.4 any other tender only after consultation with the Leader and after taking legal
advice on the impact of EU Directives and subject to the appropriate Chief Officer
making a written report to the Cabinet subsequently.

22.2  A Chief Officer may not reject an abnormally low tender without first giving the
Tenderer the opportunity to explain the tendered price.

22.3  Acceptance of a tender must be in writing and may in some cases be in the form of
an official purchase order and must be signed by the appropriate Chief Officer or by
an Officer designated by him/her. The “acceptance” must not prejudice any formal
contract required by Standing Order 24.

22.4  Where the estimated value of the contract was over £100,000 the appropriate Chief
Officer must forthwith inform the Director of Finance of the name of the successful
tenderer.

22.5  The appropriate Chief Officer must inform all tenderers of the name of the
successful tenderer and (where practical) the amount of the tender accepted and
(without connecting particular prices to particular tenderers) the prices submitted by
other tenderers.

22.6  The file copy of the record must be endorsed to indicate the tender accepted.

22.7  In the case of contracts which have been tendered via the EU procurement
process, a 10 calendar day standstill period between notification of an award to the
successful and unsuccessful tenderers and the entering into the contract must be
applied. Advice on the nature of the notification, and the details to be included, are
set out in Chapter 25 of the Procurement Guide.

Issue: 3
22/02/06
Reference: Appendix 17
21 of 28

23.
Post Tender Negotiations

23.1 No negotiations may take place under this Standing Order unless the tender
documents specifically reserve the right to do so.

(a)
Contracts between £30,000 and the relevant EU Threshold

23.2(a)
In the case of contracts whose estimated value was between £30,000 and
the EU threshold, the appropriate Chief Officer may (following the closing
date for receipt of Tenders but before acceptance of any Tender) carry out
Post Tender Negotiations to attempt to secure an improvement in the
contract price or other conditions only in one or more of the following
circumstances:

•
where the lowest submitted tender or the most economically advantageous
tender (where this is the award criterion) exceeds the estimated value of the
contract;
•
where the appropriate Chief Officer considers that the price of the lowest
tender submitted does not represent the best value for money that can
reasonably be obtained;
•
where tenders have been invited only on the basis of unit prices or a
schedule of rates and the lowest in aggregate is not the lowest on all items;

•
where the lowest submitted tender or the most economically advantageous
tender (where this is the award criterion) contains conditions, trading terms,
specification, performance, guarantees, or service delivery less favourable
than in other tenders, or than stipulated for AND this defect appears capable
of being remedied by Post Tender Negotiations.

23.2(b)
In the case of contracts whose estimated value is between £30,000 and
£50,000 the appropriate Chief Officer may (following the closing date for
receipt of tenders before acceptance of any tender) carry out Post Tender
Negotiations with the tenderer who has submitted the best price or most
economically advantageous tender (as the case may be) where that course
of action is considered to be in the best interests of the County Council
provided the integrity and accountability of the County Council are not put at
risk. This power is in addition to that set out in Standing Order 23.2(a). In
addition, in negotiations carried out under this paragraph, the requirements
of Standing Orders 23.3 and 23.9 will not apply.

Issue: 3
22/02/06
Reference: Appendix 17
22 of 28

23.3(a)
In Post Tender Negotiations carried out under Standing Order 23.2(a) where
price is the award criterion the tenderers submitting the lowest tender and all
those the value of which is within 5% of the lowest tender or, if there is no
such tender, the tenderer submitting the second lowest, must be invited to
participate in Post Tender Negotiations.

23.3(b)
In post Tender Negotiations carried out under Standing Order 23.2(a) where
the most economically advantageous tender is the award criterion the
tenderers submitting the most economically advantageous tender and the
second most economically advantageous tender must be invited to
participate in the Post Tender Negotiations.

23.4
Post Tender Negotiations may only be authorised by the appropriate Chief
Officer. In the case of contracts with an estimated value exceeding £50,000,
the appropriate Chief Officer must also obtain the consent of the Head of
Law who must thereafter be notified of the time and venue of all negotiations
carried out and who must have the right to be represented at any such
negotiations.

23.5
In the case of all Post Tender Negotiations the appropriate Chief Officer
must record in writing the objective to be secured by such negotiations and
in the case of contracts with an estimated value exceeding £100,000,
forward a copy of this record to the Head of Law.

23.6
Unless other arrangements are specifically authorised by the Head of Law
all negotiations held under this Standing Order must take place at County
Council premises with both the tenderer and the relevant officers of the
County Council present.

23.7
During negotiations with the tenderer there must always be present at least

two officers of the County Council.

23.8
A note of the negotiations will be made by one of the officers present
recording those present, the time and location of the negotiations, detail of
the discussion and any agreement reached.  The note shall be signed by all
officers present and will be kept with a file copy of the record and a further
copy will be sent to the Head of Law.

23.9
At no time must a tenderer be informed of the detail of any other tender
submitted or as to whether or not the tender he submitted was the lowest or
the most economically advantageous tender (where this is the award
criterion).
Issue: 3
22/02/06
Reference: Appendix 17
23 of 28

23.10
Acceptance of tenders following Post Tender Negotiations must be in
accordance with Standing Order 22 except that the appropriate Chief Officer
must also inform the Head of Law of the name of the successful tenderer
and of the tender price regardless of the estimated value of the contract.

23.11
The Head of Law will maintain a record of all post tender negotiations
relating to contracts with an estimated value in excess of £50,000. This
record must show the date of the tender, the date of any post tender
negotiations, the names of tenderers involved in negotiations, the original
price, the revised price, the revised specification, the names of the officers
involved and details of the contract awarded. The Head of Law will report
annually to the Cabinet, giving a summary of all the Post Tender
Negotiations which have been approved.

(b)
Contracts above the relevant EU Threshold

23.11
Except to the extent permitted under the EU Negotiated Procedure, Post
Tender Negotiations are not allowed in the case of contracts with an
estimated value exceeding the relevant EU threshold. However, in the case
of such contracts,  the appropriate Chief Officer may (following the closing
date for receipt of tenders but before acceptance of any tender) have
discussions with tenderers in order to:

•  ensure that the Tender is constructed correctly; or
•  ensure that the Tenderer has fully understood the specification; or
•  seek clarification from tenderers of quality and performance indicators.

No other discussions may take place. Where such discussions are held, the
procedures in this Standing Order at paragraphs 23.4 to 23.10 will apply with
the necessary consequential amendments so as to refer to "discussions"
rather than "negotiations".

NOTES:

Attention is drawn to the advice in Appendix D4 of the Procurement Guide relating
to the use of the Negotiated Procurement Procedure.

In limited circumstances the EU Procurement rules allow for negotiation with a
single bidder where the value of the contract exceeds the EU threshold. Advice on
this is also contained in Appendix D4 of the Procurement Guide.

Issue: 3
22/02/06
Reference: Appendix 17
24 of 28

24.1  Form of Contract

24.1  Every contract whose estimated value is over £30,000:

•  must be in writing; and must specify the supplies, materials or services to be
supplied, the price to be paid and must contain a statement as to the amount of
any discount or other deductions, the period within which the contract is to be
performed and such other conditions and terms as may be agreed between the
parties; and

•  must include a clause prohibiting the contractor from transferring or assigning or
sub-letting to any person any portion of the contract without the written
permission of the Council signified by the appropriate Chief Officer; and

•  must where relevant contain a clause requiring that all supplies and materials
used or supplied and all the workmanship must be at least of the standard
required by an appropriate British or equivalent EU or International Standards
Specification or Code of Practice current at the date of the tender; and

•  must contain a clause empowering the Council to cancel the contract and to
recover from the contractor the amount of any resulting loss if the contractor or
any person employed by him/her or acting on his/her behalf whether or not to
his/her knowledge shall have offered or given or agreed to give to any person
any gift or consideration of any kind as an inducement or reward for taking or for
not taking any action in relation to the contract or any other contract with the
Council, or, in relation to any contract with the Council, shall have committed
any offence under the Prevention of Corruption Acts 1889 to 1916, or shall have
given any fee or reward the receipt of which is an offence under Section 117(2)
of the Local Government Act 1972.

NOTE:

In certain cases it may not be appropriate to include all of these terms. However, before
excluding them, advice must be sought from the Head of Law.

24.2.1
Every such contract must either be under seal and attested to by the Director of
Corporate Resources or an officer authorised by him/her or be signed by two
officers of the County Council designated by the appropriate Chief Officer
except in the following circumstances:-

Issue: 3
22/02/06
Reference: Appendix 17
25 of 28

(a)
where in the case of individual client care contracts entered into by the
County Council it is impracticable for reasons of urgency to obtain two
signatures; or
(b)
where the contract has been procured on behalf of the County Council
by NPS Property Consultants Limited it may be signed by two of their
Senior Officers who have not been involved in the contract
negotiations.

(c)
in the case of electronic tendering and electronic auctions, the contract
may be entered into by one Officer responding electronically provided
that Officer has first obtained approval from a member of the relevant
Departmental or Unit Management Team.

Where two signatures are required at least one must be that of a person not
involved in the tendering or negotiation of the contract.

24.2.2
Chief Officers must produce a list of those Officers whom they have authorised
to sign contracts on their behalf and deposit that list with the Corporate
Procurement Unit.

24.3  Every contract whose estimated value exceeds £100,000 must in appropriate cases
provide for the payment of liquidated damages by the contractor where he/she fails
to complete the contract within the time specified.

24.4  The standard Norfolk County Council Conditions of Contract for contracts must be
incorporated in all contracts entered into by the County Council unless the parties
agree to the contrary or it is considered inappropriate to do so by the appropriate
Chief Officer where necessary in consultation with the Head of Law.

24.5  No contract whose estimated value is over £30,000 can be entered into unless the
Contract Risk Analysis as set out in Chapter 25 of the Procurement Guide has been
completed and lodged with the Corporate Procurement Unit and, where required as
a result of the Analysis, signed off in accordance with the procedure set out in that
section of the Guide.

25.  Transfer of Undertakings (Protection of Employment) Regulations 1981
TUPE)

In relation to contracts where there is a likelihood that employees may be
transferred to a new employer the invitation to tender will state that the County
Council assumes that TUPE will apply unless evidence to the contrary is produced.

Issue: 3
22/02/06
Reference: Appendix 17
26 of 28

NOTE:

Advice must be sought from Human Resources and the Pensions Team before starting a
procurement which might involve a transfer of staff.

26. E-Procurement

26.1 E-Tendering

These Contract Standing Orders apply equally to e-tendering subject to Contract
Standing Orders 18.2, 19 and 20.1 being replaced by separate rules (to be agreed
by the Corporate Procurement Unit) relating specifically to e-tendering.

26.2 E-Auctions

26.2.1 Procurements by E-Auction are acceptable in order to achieve the final contract
price provided all appropriate guidelines have been complied with and indicative
prices obtained.

26.2.2 All E-Auctions must be carried out under the supervision of the Corporate
Procurement Unit.

26.2.3 The requirements in the Contract Standing Orders apply to procurements by E-
Auction except that:-

(a)
The tendering requirements will not automatically apply but instead the
position on tendering will be governed by the guidelines referred in Standing
Order 26.2.1.

(b)
Contract Standing Orders 18.2, 19 and 20.1 will not apply.

27. Constructing
Excellence

The County Council endorses the principle of working with contractors in
accordance with the principles of Rethinking Construction and encourages Chief
Officers to apply these principles where appropriate.

Issue: 3
22/02/06
Reference: Appendix 17
27 of 28

28. Procurement
Guide


Those applying these Standing Orders are also advised to refer to the County
Council’s Procurement Guide. This Guide provides advice on a range of matters to
be considered in connection with the procurement of goods, services and works
including advice on the following:-

(a)  the extent to which non-commercial considerations can be taken into
account in awarding contracts.
(b)
what the invitation to tender should say regarding the transfer of staff and
the requirement to provide workforce information.
(c) evaluation
of
tenderers and tenders.
(d)
post tender negotiation.

Issue: 3
22/02/06
Reference: Appendix 17
28 of 28